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The out-of-state corporations' who wrote Prop. 27 filled it with deductions, write-offs, and
loopholes that shortchange funding for the homelessness.

The out-of-state corporations behind Prop 27 have a history of breaking promises they’ve made to other states.


In Colorado, where the same out-of-state corporate operators wrote and passed their own measure, the Blue Sky Consulting Group found that instead of the 8.5% revenue promised, the state only received 4.3% after the corporate operators adjusted their taxable income with aggressive accounting and use of so-called “free play” betting. When funding ran short, Colorado taxpayers had to bail out the program that was supposed to be funded by online gaming revenues.

The San Jose Mercury News says: “Prop. 27 contains accounting provisions that online gaming
companies have used to minimize tax payouts in other states.”

According to California’s former Director of Finance Tim Gage:

“Similar unlimited deductions in other states have reduced tax revenues by more than half, and there is no reason to expect California’s experience will differ.”

In fact, their analysis shows how other states have seen dramatically less than promised with similar measures. In Michigan, Colorado and Connecticut, state revenues were half or less of what these out of state corporation promised taxpayers. Prop 27 was written by and for these same companies to buoy their bottom line, not help the communities where they operate.

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